Google launches NFC payment service, eBay sues alleging theft

After Google unveiled the Google Wallet Near Field Communication mobile payment service on Thursday, eBay and subsidiary PayPal filed a lawsuit alleging the project's team lead stole trade secrets to create the service.

Mountain View, Calif.-based Google showed off the new mobile payment Android app at an event in New York City Thursday. Google Wallet utilizes virtual cards, such as a Google Prepaid Card, to 'tap to pay' via NFC technology.

CitiBank will participate as an early partner, as the service will support all Citi MasterCards at launch. Google Prepaid Cards can be topped up with any existing credit card. Eventually, the service will support loyalty cards, gift cards, receipts, boarding passes, tickets and even keys.

Google Wallet will launch first on the flagship Nexus S 4G on the Sprint network. Android boss Andy Rubin said last year that the Nexus S, which was co-developed by Google and Samsung, was "the lead device for the Gingerbread/Android 2.3 release."

MacNN reports that, within hours of the Google Wallet launch, eBay sued the search giant for allegedly using the company's trade secrets to build the technology. According to the complaint, Google Wallet project lead Osama Bedier was poached away from PayPal in the middle of negotiating a deal between the two companies.

"At the very point when the companies were negotiating and finalizing the Android-PayPal deal, Bedier was interviewing for a job at Google — without informing PayPal of this conflicting position," eBay and PayPal said. Bedier allegedly brought to Google proprietary technical knowledge from PayPal, as well as knowledge of "major retailers," and tried to poach PayPal employees while at Google.

The lawsuit also alleges that former eBay executive Stephanie Tilenius breached a consulting contract with the company by joining Google as its VP of commerce a month before it finished.

As a competing virtual payment solution, Google Wallet resembles PayPal in several aspects. Google has yet to respond to the accusations. If the two companies are unable to reach a settlement and the lawsuit holds up in court, it could threaten the fledgling service.

Apple is expected to join the fray with its own NFC payment solution. Reports differ on whether the iPhone maker will add NFC functionality to its next generation smartphone. Earlier this month, one Wall Street research firm claimed Apple will not add a Radio Frequency Identification chip, while rumors swirled earlier in the year that Apple would include an NFC chip for an e-wallet service in the next-generation iPhone.

In April, Apple was awarded a patent for an RFID tag reader embedded within a touch panel to save space. According to analyst Brian White of Ticonderoga Securities, Apple is planning to utilize NFC with a "unique twist" beyond just e-wallet functionality.

After Google unveiled the Google Wallet Near Field Communication mobile payment service on Thursday, eBay and subsidiary PayPal filed a lawsuit alleging the project's team lead stole trade secrets to create the service.

Mountain View, Calif.-based Google showed off the new mobile payment Android app at an event in New York City Thursday. Google Wallet utilizes virtual cards, such as a Google Prepaid Card, to 'tap to pay' via NFC technology.

CitiBank will participate as an early partner, as the service will support all Citi MasterCards at launch. Google Prepaid Cards can be topped up with any existing credit card. Eventually, the service will support loyalty cards, gift cards, receipts, boarding passes, tickets and even keys.

Google Wallet will launch first on the flagship Nexus S 4G on the Sprint network. Android boss Andy Rubin said last year that the Nexus S, which was co-developed by Google and Samsung, was "the lead device for the Gingerbread/Android 2.3 release."

MacNN reports that, within hours of the Google Wallet launch, eBay sued the search giant for allegedly using the company's trade secrets to build the technology. According to the complaint, Google Wallet project lead Osama Bedier was poached away from PayPal in the middle of negotiating a deal between the two companies.

"At the very point when the companies were negotiating and finalizing the Android-PayPal deal, Bedier was interviewing for a job at Google -- without informing PayPal of this conflicting position," eBay and PayPal said. Bedier allegedly brought to Google proprietary technical knowledge from PayPal, as well as knowledge of "major retailers," and tried to poach PayPal employees while at Google.

The lawsuit also alleges that former eBay executive Stephanie Tilenius breached a consulting contract with the company by joining Google as its VP of commerce a month before it finished.

As a competing virtual payment solution, Google Wallet resembles PayPal in several aspects. Google has yet to respond to the accusations. If the two companies are unable to reach a settlement and the lawsuit holds up in court, it could threaten the fledgling service.

Apple is expected to join the fray with its own NFC payment solution. Reports differ on whether the iPhone maker will add NFC functionality to its next generation smartphone. Earlier this month, one Wall Street research firm claimed Apple will not add a Radio Frequency Identification chip, while rumors swirled earlier in the year that Apple would include an NFC chip for an e-wallet service in the next-generation iPhone.

In April, Apple was awarded a patent for an RFID tag reader embedded within a touch panel to save space. According to analyst Brian White of Ticonderoga Securities, Apple is planning to utilize NFC with a "unique twist" beyond just e-wallet functionality.

there is NO way this is theft. IF ebay/paypal think they are the first get a fracking grip. they have had this system in Japan for years now. people load money in th esame way to their phone and use it for purchasing at stores and vending machines also Ebay sucks anyways their corperate structure is built on how to screw everyone else.

They stole copyrighted books. They stole android OS. They stole id's. They stole iPhone functionalities. That's what they do! And the financial institutions, like citi, well, they sleep with whoever they can. Google and the big banks are right at home with each other.

there is NO way this is theft. IF ebay/paypal think they are the first get a fracking grip.

They aren't claiming they were first. THey are claiming that Google hired key personnel from ebay and paypal who had knowledge of deals in the works etc and used that knowledge to benefit Google while perhaps at the same time hurting the other companies.

there is NO way this is theft. IF ebay/paypal think they are the first get a fracking grip. they have had this system in Japan for years now. people load money in th esame way to their phone and use it for purchasing at stores and vending machines also Ebay sucks anyways their corperate structure is built on how to screw everyone else.